Core formulas
The formulas to keep straight
PayPal fee = payment x percentage fee + fixed feeNet payout = payment - PayPal feeAmount to charge = (target net + fixed fee) / (1 - percentage fee)Profit after PayPal = net payout - product cost - shipping costHow do PayPal Goods and Services fees work?
PayPal Goods and Services fees use two parts: a percentage of the payment and a fixed fee. Verified July 4, 2026, PayPal's US business pricing page lists PayPal and Venmo online payments at 3.49% + $0.49. That means a $100 payment has a $3.98 fee before cost, shipping, refund, or dispute handling.
The percentage fee scales with the payment. The fixed fee does not. That is why small deposits and low-ticket products feel expensive on PayPal even when the rate looks normal.
PayPal US fee examples at 3.49% + $0.49, verified July 4, 2026
| Buyer pays | PayPal fee | Seller receives | Effective fee rate |
|---|---|---|---|
| $10.00 | $0.84 | $9.16 | 8.4% |
| $25.00 | $1.36 | $23.64 | 5.5% |
| $50.00 | $2.24 | $47.77 | 4.5% |
| $100.00 | $3.98 | $96.02 | 4.0% |
Which PayPal rate should I use?
Use the rate for the PayPal product that actually processed the payment. Verified July 4, 2026, PayPal lists PayPal and Venmo online payments at 3.49% + $0.49, Expanded Checkout cards at 2.89% + $0.29, PayPal Checkout cards at 2.99% + $0.49, card-present payments at 2.29% + $0.09, and Virtual Terminal at 3.39% + $0.29.
My rule: match the checkout path first, then calculate profit. A seller who uses the PayPal online rate for a virtual terminal payment will undercount the fee.
Selected PayPal US business rates, verified July 4, 2026
| Payment type | Listed PayPal rate | Use when |
|---|---|---|
| PayPal online | 3.49% + $0.49 | Buyer pays with PayPal at online checkout |
| Venmo online | 3.49% + $0.49 | Buyer pays with Venmo at online checkout |
| Expanded Checkout card | 2.89% + $0.29 | Card payment through Expanded Checkout |
| PayPal Checkout card | 2.99% + $0.49 | Card payment through PayPal Checkout |
| Card present | 2.29% + $0.09 | In-person card-present payment |
| Card keyed in | 3.49% + $0.09 | Seller manually keys the card |
| Virtual Terminal | 3.39% + $0.29 | Card entered in PayPal's browser terminal |
Should you pass PayPal fees to the buyer?
The cleaner pricing move is usually to build payment fees into the product price, not add a surprise fee at checkout. A visible surcharge can create legal, card-network, and customer trust problems. Reverse mode is still useful because it shows the true price needed to keep a target net amount.
For a $50 target net at 3.49% + $0.49, the gross-up price is $52.32. That number is a pricing input, not automatic permission to surcharge.
- Use reverse mode when quoting invoices, deposits, or custom work.
- Check PayPal terms and local rules before adding a fee line to a buyer invoice.
- For product pricing, roll the expected fee into the selling price and test the margin.
Decision table
PayPal fee decisions
| Question | Better answer | Why |
|---|---|---|
| Known buyer payment | Use standard mode | It shows fee, net, and effective rate. |
| Need to keep a fixed amount | Use reverse mode | It solves the gross payment before quoting. |
| Low-ticket product | Check effective fee rate | The fixed fee can double the apparent fee load. |
| Card or terminal payment | Change the inputs | PayPal product rates differ. |
Worked examples
Examples you can compare against your own numbers
Example: $50 PayPal online payment
A buyer pays $50 through PayPal or Venmo online checkout. The seller uses PayPal's checked US rate of 3.49% + $0.49.
| Buyer payment | $50.00 | The gross amount before PayPal fees. |
|---|---|---|
| Percentage fee | $1.75 | $50 x 3.49%. |
| Fixed fee | $0.49 | The fixed transaction fee. |
| Total PayPal fee | $2.24 | Rounded to cents. |
| Net payout | $47.77 | Before product cost, shipping cost, refunds, or disputes. |
Takeaway: The fee is 4.5% of the $50 payment, not 3.49%, because the $0.49 fixed fee is part of the charge.
Open this PayPal exampleExample: quote a custom order to net $100
A seller wants to keep $100 after PayPal fees. Reverse mode solves for the payment that covers the fee on top.
| Target net | $100.00 | What the seller wants after the fee. |
|---|---|---|
| Rate used | 3.49% + $0.49 | PayPal or Venmo online default. |
| Amount to charge | $104.13 | ($100 + $0.49) / (1 - 0.0349). |
| Estimated fee | $4.13 | The difference between buyer payment and net. |
Takeaway: Reverse math is best used before quoting, so the seller can decide whether the final price still makes sense.
Action checklist
Before you use this number in the real business
- 1Match the PayPal product to the payment path.
- 2Enter the percentage and fixed fee from the current PayPal page or your account.
- 3Run both the fee result and the profit-after-cost result.
- 4Use reverse mode before quoting a target net amount.
- 5Add non-processing costs such as shipping, packaging, refunds, and disputes outside the PayPal fee.
Common mistakes
Mistakes that make the answer look better than reality
FAQs
Questions people ask before making the decision
What is the PayPal Goods and Services fee in the US?
Verified July 4, 2026, PayPal lists US PayPal and Venmo online payments at 3.49% + $0.49 per transaction. Card, invoice, POS, and virtual terminal payments can use different PayPal rates.
How much does PayPal take from $100?
At 3.49% + $0.49, PayPal takes $3.98 from a $100 PayPal or Venmo online payment. The seller receives $96.02 before product cost, shipping cost, refunds, disputes, or currency conversion.
How do I calculate PayPal fees backward?
Use this formula: amount to charge = (target net + fixed fee) / (1 - percentage fee). At 3.49% + $0.49, a seller needs to charge $104.13 to net $100.
Is the PayPal fixed fee important?
Yes. At 3.49% + $0.49, a $10 payment costs $0.84, which is an 8.4% effective fee. The same rate on a $100 payment costs $3.98, or 4.0%.
Are PayPal and Venmo business fees the same?
PayPal's US business pricing page checked July 4, 2026 lists PayPal and Venmo online payments at 3.49% + $0.49. Other PayPal products on the same page use different rates.
Does this include PayPal international fees?
No. This calculator is set up for US domestic planning with editable fee fields. Add international, currency conversion, dispute, refund, and account-specific fees before using the result for a real quote.
Sources and notes
Where the assumptions come from
Official PayPal US business pricing page checked July 4, 2026.
The general profit formula used after marketplace or payment fees are known.
How FeeProofed checks calculator formulas, source notes, examples, and update cadence.